FEDERAL COMMUNICATIONS COMMISSION WASHINGTON. February 4, 2015

Transcription

1 FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN February 4, 2015 The Honorable Ron Johnson Chairman Committee on Homeland Security and Governmental Affairs United States Senate 340 Dirksen Senate Office Building Washington, D.C Dear Chairman Johnson: On November 24, 2014, the Government Accountability Office (GAO) released a report entitled FCC Should Track the Application of Fixed Internet Usage-Based Pricing and Help Improve Consumer Education, GAO-l 5-l 08. The GAO Report examined available information regarding the application of usage-based pricing by Internet service providers, issues related to usage-based pricing that selected consumers reported as being important to them, and the potential effects of usage-based pricing on consumers. The Report recommends that the FCC: (1) work with fixed providers to develop a voluntary code of conduct, similar to the Wireless Code of Conduct, to improve consumer communication and understanding of data use and pricing and (2) make use of existing data collection sources to track fixed Internet usage-based pricing and its effect on consumers nationwide so that the FCC can take actions, if necessary, to protect consumer interests. I agree that usage-based pricing is an important consumer issue and one that the FCC must ensure does not reduce Americans' access to broadband services. The Commission recognizes the potential significance of data caps and other usage-based pricing for consumers of fixed broadband services. In contrast to mobile wireless services, for which data caps and other usage-based pricing are relatively common, fixed wireline broadband services historically have not been subject to caps on data usage. We know, however, that some providers of fixed services have begun to impose data caps. The Commission is evaluating these developments in several ongoing proceedings. For example, in the recently adopted 20 J 5 Broadband Progress Report and Notice of Inquiry, the Commission identifies the potential for usage allowances, among other factors, to affect future determinations of whether "advanced telecommunications capability" is available to all Americans. The Commission determines to examine these issues, among other factors, in its next Broadband Progress Report. Usage-based limits also are an impmiant factor in determining services that are eligible for support under the FCC's Connect America Fund program. The Wireline Competition Bureau has established an initial minimum usage limit of 100 GB per month for price cap carriers that set any usage allowance for service offerings they rely upon to meet their obligations associated with their acceptance of Connect America Phase II model-based support. 28 The Bureau also requires price cap carriers accepting Phase II suppmi to offer a minimum usage allowance over 28 See Connect America Fund, WC Docket No , Report and Order, 28 FCC Red 15060, (Wireline Camp. Bur ).

2 Page 5- The Honorable Ron Johnson the course of the Connect America Phase II's term (now set at six years) that remains consistent with trends in usage for 80 percent of consumers using cable or fiber-based fixed broadband services. 29 In short, we are very cognizant of the critical impact that consumers' data usage has on the quality of their experience in accessing the Internet. Additionally, in its 2014 Open Internet Notice of Proposed Rulemaking, the Commission requested comment on a variety of issues relating to this topic. 30 In particular, the Commission asked for comment "on what economic tools broadband providers utilize to manage traffic on their networks," 31 and noted that "[b]roadband providers may address traffic management through commercial terms and conditions on end users, such as pricing for different levels of throughput or through the use of 'data caps. "' 32 The Commission also asked "[t]o what extent and in what ways do broadband providers use such tools to manage traffic, such as by excluding certain content from such an end user data cap?" 33 In response to these questions, some commenters raised usage-based pricing for both mobile and fixed services as one of many issues of potential concern, 34 while others supp01ied such practices as effective means of managing network capacity. 35 On February 5th, I will circulate to my fellow Commissioners for their consideration a draft Report and Order adopting new Open Internet protections. The rules that I intend to propose will provide the FCC with the tools necessary to protect a fast, fair, and open Internet. In addition to rules governing the conduct of broadband providers, I will propose enhancements to the existing transparency rule. That rule, which empowers consumers to make informed choices about broadband services, already requires broadband providers to disclose the commercial terms of a consumer's broadband service, including any data caps or allowances. Because it provides a basis for enforcement where appropriate, the existing transparency rule provides us with an even more effective tool than a voluntary code of conduct would. I am confident that the transparency rule - as it exists already today and as I hope it will be enhanced moving forward - will help to ensure that consumers are protected from harmful practices. In addition to the foregoing, the Commission is currently monitoring usage-based pricing of fixed services through our review of consumer complaints. To date, a relatively small prop01iion of the overall complaints have focused on issues pertaining to data caps or other forms of usage-based pricing of fixed services. But we are continuing to monitor consumer 29!d. at I Protecting and Promoting the Open Internet, GN Docket No. I 4-28, Notice of Proposed Rulemaking. 29 FCC Red 5561 (20 14) (2014 Open Internet Notice()( Proposed Rulemaking). 31!d. at !d. 33!d. 34 See, e.g., Comments of Public Knowledge et a!., GN Docket 14-28, at (filed July I 5, 20 I 4) fcc. gov/ecfs/document/view?id=7 5' ?: Comment of Gai I Day (filed July I 7, 20 I 4) See, e.g., Comments oflnt'l Center for Law and Economics and TechFreedom, GN Docket I4-28, at 19 (tiled July 17, 20 14)

3 Page 6- The Honorable Ron Johnson complaints carefully for any changes that would suggest that additional action is needed. In this regard, the Commission's Consumer and Governmental Affairs Bureau is streamlining the process of synthesizing and analyzing consumer complaint trends and will make more of that data readily accessible to the public. We will use this enhanced capability to monitor customer complaints closely, to identify any problems associated with the use of data caps and other usage-based pricing measures, and to take action where appropriate. We believe these cmtent and future measures offer benefits that go beyond what a voluntary code of conduct would accomplish and that it is therefore not necessary to take that step at this time. At the same time, we will use the information currently available, as well as explore the collection of additional data resources, to help ensure the Commission is well positioned to take additional action to protect consumers, should that prove necessary. As recommended in the GAO Report, we will evaluate the information we collect in the Commission' s Urban Rates Survey and on the Form 481 to enhance our understanding ofwhat usage-based pricing practices are used in the market for fixed services. These data collections were developed to support the Commission's Universal Service Fund's High-Cost program and do not offer information on whether consumers subscribe to plans that have usage limits, on consumers' usage relative to the limits, or on the effect of usage-based pricing on consumers' bills. In addition, and as discussed above, we will ensure that our conswner complaint system carefully catalogs and tracks any complaints that come in, including those that may result from the additional rules I have proposed rhat my colleagues adopt in the Open Internet proceeding. We will also look at additional data sources to help evaluate this issue and others affecting consumers' ability to access brciadband services. 36 We appreciate GAO's analysis and recommendations and its concern for the protection of consumers as we work to reduce barriers and promote competition in the market for broadband services. Should you have any questions or comments regarding this matter, I would be pleased to discuss them with you. r-sincere~!ji ( cpm/1( 1f4../ Tom Wheeler cc: The Honorable Anna Eshoo 36 The Commi ssion has previously sought comment on whether to augment its Form 477 data collection to include price and customer satisfaction, along with other factors, and these issues remain open for the Commission's consideration. See Modernizing the FCC Form 477 Data Program eta!., WC Docket No et al., Notice of Proposed Rulemaking, 26 FCC Red 1508 (20 11); Report and Order, 28 FCC Red 9887, 9892, para. 13 n.29 (20 13).

4 FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN February 4, 2015 The Honorable Elijah E. Cummings Ranking Member Committee on Homeland Security and Governmental Affairs U.S. House of Representatives 2157 Rayburn House Office Building Washington, D.C Dear Congressman Cummings: On November 24, 2014, the Government Accountability Office (GAO) released a report entitled FCC Should Track the Application of Fixed Internet Usage-Based Pricing and Help Improve Consumer Education, GA The GAO Report examined available information regarding the application ofusage-based pricing by Internet service providers, issues related to usage-based pricing that selected consumers reported as being impo1iant to them, and the potential effects of usage-based pricing on consumers. The Report recommends that the FCC: ( 1) work with fixed providers to develop a voluntary code of conduct, similar to the Wireless Code of Conduct, to improve consumer communication and understanding of data use and pricing and (2) make use of existing data collection sources to track fixed Internet usage-based pricing and its effect on consumers nationwide so that the FCC can take actions, if necessary, to protect conswner interests. I agree that usage-based pricing is an important consumer issue and one that the FCC must ensure does not reduce Americans' access to broadband services. The Commission recognizes the potential significance of data caps and other usage-based pricing for consumers of fixed broadband services. In contrast to mobile wireless services, for which data caps and other usage-based pricing are relatively common, fixed wireline broadband services historically have not been subject to caps on data usage. We know, however, that some providers of fixed services have begun to impose data caps. The Commission is evaluating these developments in several ongoing proceedings. For example, in the recently adopted 2015 Broadband Progress Report and Notice of Inquiry, the Commission identifies the potential for usage allowances, among other factors, to affect future determinations of whether "advanced telecommunications capability" is available to all Americans. The Commission detennines to examine these issues, among other factors, in its next Broadband Progress Report. Usage-based limits also are an important factor in determining services that are eligible for support under the FCC' s Connect America Fund program. The Wireline Competition Bureau has established an initial minimum usage limit of 100 GB per month for price cap carriers that set any usage allowance for service offerings they rely upon to meet their obligations associated with their acceptance of Connect America Phase II model-based suppmi. 10 The Bureau also requires price cap carriers accepting Phase II support to offer a minimum usage allowance over 10 See Connect America Fund, WC Docket No. I 0-90, Report and Order, 28 FCC Red 15060, (Wireline Comp. Bur ).

5 Page 2- The Honorable Elijah E. Cummings the course of the Connect America Phase II's term (now set at six years) that remains consistent with trends in usage for 80 percent of consumers using cable or fiber-based fixed broadband services. 11 In short, we are very cognizant of the critical impact that consumers' data usage has on the quality of their experience in accessing the Internet. Additionally, in its 2014 Open Internet Notice of Proposed Rulemaking, the Commission requested comment on a variety of issues relating to this topic. 12 In particular, the Commission asked for comment "on what economic tools broadband providers utilize to manage traffic on their networks," 13 and noted that "[b]roadband providers may address traffic management through commercial terms and conditions on end users, such as pricing for different levels of throughput or through the use of 'data caps."' 14 The Commission also asked "[t]o what extent and in what ways do broadband providers use such tools to manage traffic, such as by excluding ce1iain content from such an end user data cap?" 15 In response to these questions, some commenters raised usage-based pricing for both mobile and fixed services as one of many issues of potential concern, 16 while others supported such practices as effective means of managing network capacity. 17 On February 5th, I will circulate to my fellow Commissioners for their consideration a draft Report and Order adopting new Open Internet protections. The rules that I intend to propose will provide the FCC with the tools necessary to protect a fast, fair, and open Internet. In addition to rules governing the conduct of broadband providers, I will propose enhancements to the existing transparency rule. That rule, which empowers consumers to make informed choices about broadband services, already requires broadband providers to disclose the commercial terms of a consumer's broadband service, including any data caps or allowances. Because it provides a basis for enforcement where appropriate, the existing transparency rule provides us with an even more effective tool than a voluntary code of conduct would. I am confident that the transparency rule -as it exists already today and as I hope it will be enhanced moving forward - will help to ensure that consumers are protected from harmful practices. In addition to the foregoing, the Commission is currently monitoring usage-based pricing of fixed services through our review of consumer complaints. To date, a relatively small prop01iion of the overall complaints have focused on issues pertaining to data caps or other forms of usage-based pricing of fixed services. But we are continuing to monitor consumer II fd. at Protecting and Promoting the Open Internet, GN Docket No , Notice of Proposed Rulemaking, 29 FCC Red 5561 (20 14) (2014 Open Internet Notice of Proposed Ru!emaking). 13!d. at !d. 15!d. 16 See, e.g., Comments of Public Knowledge eta!., GN Docket 14-28, at (filed July 15, 2014) : Comment of Gail Day (filed July 17, 20 14) fcc.gov/ecfs/commentlview?id= See, e.g., Comments of lnt' I Center for Law and Economics and Tech freedom, GN Docket 14-28, at 19 (filed July 17, 2014)

6 Page 3- The Honorable Elijah E. Cummings complaints carefully for any changes that would suggest that additional action is needed. In this regard, the Commission's Consumer and Governmental Affairs Bureau is streamlining the process of synthesizing and analyzing consumer complaint trends and will make more of that data readily accessible to the public. We will use this enhanced capability to monitor customer complaints closely, to identify any problems associated with the use of data caps and other usage-based pricing measures, and to take action where appropriate. We believe these current and future measures offer benefits that go beyond what a voluntary code of conduct would accomplish and that it is therefore not necessary to take that step at this time. At the same time, we will use the information currently available, as well as explore the collection of additional data resources, to help ensure the Commission is well positioned to take additional action to protect consumers, should that prove necessary. As recommended in the GAO Report, we will evaluate the information we collect in the Commission' s Urban Rates Survey and on the Form 481 to enhance our understanding of what usage-based pricing practices are used in the market for fixed services. These data collections were developed to support the Commission' s Universal Service Fund's High-Cost program and do not offer information on whether consumers subscribe to plans that have usage limits, on consumers' usage relative to the limits, or on the effect of usage-based pricing on consumers' bills. In addition, and as di scussed above, we will ensure that our consumer complaint system carefully catalogs and tracks any complaints that come in, including those that may result from the additional rules I have proposed that my colleagues adopt in the Open Internet proceeding. We will also look at additional data sources to help evaluate this issue and others affecting consumers' ability to access broadband ervices. 18 We appreciate GAO's analysis and recommendations and its concern for the protection of consumers as we work to reduce baitiers and promote competition in the market for broadband services. Should you have any questions or comments regarding this matter, I would be pleased to discuss them with you. Sincerely, cc: The Honorable Anna Eshoo 18 The Commission has previously sought comment on whether to augment its Form 477 data collection to include price and customer satisfaction, along with other factors, and these issues remain open for the Commission's consideration. See Modernizing the FCC Form 477 Data Program et at., WC Docket No. I 1-10 et al., Notice of Proposed Rulemaking, 26 FCC Red 1508 (20 II); Report and Order, 28 FCC Red 9887, 9892, para. 13 n.29 (20 13).

7 FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN February 4, 2015 The Honorable Darrell Issa Chairman Committee on Homeland Security and Governmental Affairs U. S. House of Representatives 2157 Rayburn House Office Building Washington, D.C Dear Chairman Issa: On November 24, 2014, the Government Accountability Office (GAO) released a report entitled FCC Should Track the Application of Fixed Internet Usage-Based Pricing and Help Improve Consumer Education, GA The GAO Report examined available information regarding the application of usage-based pricing by Internet service providers, issues related to usage-based pricing that selected consumers repmied as being important to them, and the potential effects of usage-based pricing on consumers. The RepOii recommends that the FCC: (1) work with fixed providers to develop a voluntary code of conduct, similar to the Wireless Code of Conduct, to improve consumer communication and understanding of data use and pricing and (2) make use of existing data collection sources to track fixed Internet usage-based pricing and its effect on consumers nationwide so that the FCC can take actions, if necessary, to protect consumer interests. I agree that usage-based pricing is an important consumer issue and one that the FCC must ensure does not reduce Americans' access to broadband services. The Commission recognizes the potential significance of data caps and other usage-based pricing for consumers of fixed broadband services. In contrast to mobile wireless services, for which data caps and other usage-based pricing are relatively common, fixed wireline broadband services historically have not been subject to caps on data usage. We know, however, that some providers of fixed services have begun to impose data caps. The Commission is evaluating these developments in several ongoing proceedings. For example, in the recently adopted 2015 Broadband Progress Report and Notice of Inquiry, the Commission identifies the potential for usage allowances, among other factors, to affect future determinations of whether "advanced telecommunications capability" is available to all Americans. The Commission determines to examine these issues, among other factors, in its next Broadband Progress Repmi. Usage-based limits also are an important factor in determining services that are eligible for support under the FCC's Connect America Fund program. The Wireline Competition Bureau has established an initial minimum usage limit of 100 GB per month for price cap carriers that set any usage allowance for service offerings they rely upon to meet their obligations associated with their acceptance of Connect America Phase II model-based supp The Bureau also requires price cap carriers accepting Phase II suppon to offer a minimum usage allowance over 19 See Connect America Fund. WC Docket No. I 0-90, Report and Order, 28 FCC Red 15060, (Wire line Comp. Bur. 2013).

8 Page 2- The Honorable Darrell Issa the course of the Connect America Phase II's term (now set at six years) that remains consistent with trends in usage for 80 percent of consumers using cable or fiber-based fixed broadband services. 20 In short, we are very cognizant of the critical impact that consumers' data usage has on the quality of their experience in accessing the Internet. Additionally, in its 2014 Open Internet Notice of Proposed Rulemaking, the Commission requested comment on a variety of issues relating to this topic. 21 In patiicular, the Commission asked for comment "on what economic tools broadband providers utilize to manage traffic on their networks," 22 and noted that "[b]roadband providers may address traffic management through commercial terms and conditions on end users, such as pricing for different levels of throughput or through the use of 'data caps."' 23 The Commission also asked "[t]o what extent and in what ways do broadband providers use such tools to manage traffic, such as by excluding certain content from such an end user data cap?" 24 In response to these questions, some commenters raised usage-based pricing for both mobile and fixed services as one of many issues of potential concern, 25 while others supported such practices as effective means of managing network capacity. 26 On February 5th, I will circulate to my fellow Commissioners for their consideration a draft Report and Order adopting new Open Internet protections. The rules that I intend to propose will provide the FCC with the tools necessary to protect a fast, fair, and open Internet. In addition to rules governing the conduct of broadband providers, I will propose enhancements to the existing transparency rule. That rule, which empowers consumers to make informed choices about broadband services, already requires broadband providers to disclose the commercial terms of a consumer's broadband service, including any data caps or allowances. Because it provides a basis for enforcement where appropriate, the existing transparency rule provides us with an even more effective tool than a voluntary code of conduct would. I am confident that the transparency rule- as it exists already today and as I hope it will be enhanced moving forward- will help to ensure that consumers are protected from harmful practices. In addition to the foregoing, the Commission is currently monitoring usage-based pricing of fixed services through our review of consumer complaints. To date, a relatively small proportion of the overall complaints have focused on issues pertaining to data caps or other forms of usage-based pricing of fixed services. But we are continuing to monitor consumer 20!d. at I Protecting and Promoting the Open Internet, GN Docket No. I4-28, Notice of Proposed Ruiemaking, 29 FCC Red 556I (20I4) (2014 Open Internet Notice ofproposed Rulemaking). 22!d. at ld. 24 ld. 25 See, e.g., Comments ofpubiic Knowledge eta!., GN Docket I4-28, at48-60 (filed July IS, 20I4) gov/ecfs/document/view?id= : Comment of Gail Day (filed July I 7, 20 I 4) See, e.g., Comments oflnt'l Center for Law and Economics and TechFreedom. GN Docket I4-28, at 19 (filed July 17, 20 14) I I.

9 Page 3- The Honorable Darrell Issa complaints carefully for any changes that would suggest that additional action is needed. In this regard, the Commission's Consumer and Governmental Affairs Bureau is streamlining the process of synthesizing and analyzing consumer complaint trends and will make more of that data readily accessible to the public. We will use this enhanced capability to monitor customer complaints closely, to identify any problems associated with the use of data caps and other usage-based pricing measures, and to take action where appropriate. We believe these current and future measures offer benefits that go beyond what a voluntary code of conduct would accomplish and that it is therefore not necessary to take that step at this time. At the same time, we will use the information cunently available, as well as explore the collection of additional data resources, to help ensure the Commission is well positioned to take additional action to protect consumers, should that prove necessary. As recommended in the GAO Rep01i, we will evaluate the information we collect in the Commission's Urban Rates Survey and on the Form 481 to enhance our understanding of what usage-based pricing practices are used in the market for fixed services. These data collections were developed to support the Commission's Universal Service Fund's High-Cost program and do not offer information on whether consumers subscribe to plans that have usage limits, on consumers' usage relative to the limits, or on the effect of usage-based pricing on consumers' bills. In addition, and as discussed above, we will ensure that our consumer complaint system carefully catalogs and tracks any complaints that come in, including those that may result from the additional rules I have proposed that my colleagues adopt in the Open Internet proceeding. We will also look at additional data sources to help evaluate this issue and others affecting consumers' ability to access broadband services? 7 We appreciate GAO's analysis and recommendations and its concern for the protection of consumers as we work to reduce barriers and promote competition in the market for broadband services. Should you have any questions or comments regarding this matter, I would be pleased to discuss them with you. Sincerely,.',f ( ~ ~Jt4~r Tom Wheeler cc: The Honorable Anna Eshoo 27 The Commission has previously sought comment on whether to augment its Form 477 data co ll ection to include price and customer satisfaction, along with other factors, and these issues remain open for the Commission's consideration. See Modernizing the FCC Form 477 Data Program eta!., WC Docket No. Il-l 0 et al., Notice of Proposed Rulemaking, 26 FCC Red 1508 (20 I I); Report and Order, 28 FCC Red 9887, 9892, para. 13 n.29 (20 13).

10 FEDERAL COMMUNICATIONS COMMISSION WASHINGTON OFFICE OF THE CHAIRMAN February 4, 2015 The Honorable Thomas R. Carper Ranking Member Committee on Homeland Security and Governmental Affairs United States Senate 340 Hart Senate Office Building Washington, D.C Dear Senator Carper: On November 24, 2014, the Government Accountability Office (GAO) released a report entitled FCC Should Track the Application of Fixed Internet Usage-Based Pricing and Help Improve Consumer Education, GA The GAO Report examined available information regarding the application of usage-based pricing by Internet service providers, issues related to usage-based pricing that selected consumers reported as being important to them, and the potential effects of usage-based pricing on consumers. The Report recommends that the FCC: (1) work with fixed providers to develop a voluntary code of conduct, similar to the Wireless Code of Conduct, to improve consumer communication and understanding of data use and pricing and (2) make use of existing data collection sources to track fixed Internet usage-based pricing and its effect on consumers nationwide so that the FCC can take actions, if necessary, to protect consumer interests. I agree that usage-based pricing is an important consumer issue and one that the FCC must ensure does not reduce Americans' access to broadband services. The Commission recognizes the potential significance of data caps and other usage-based pricing for consumers of fixed broadband services. In contrast to mobile wireless services, for which data caps and other usage-based pricing are relatively common, fixed wireline broadband services historically have not been subject to caps on data usage. We know, however, that some providers of fixed services have begun to impose data caps. The Commission is evaluating these developments in several ongoing proceedings. For example, in the recently adopted 2015 Broadband Progress Report and Notice of Inquiry, the Commission identifies the potential for usage allowances, among other factors, to affect future determinations of whether "advanced telecommunications capability" is available to all Americans. The Commission determines to examine these issues, an1ong other factors, in its next Broadband Progress Report. Usage-based limits also are an important factor in determining services that are eligible for support under the FCC's Connect America Fund program. The Wireline Competition Bureau has established an initial minimum usage limit of 100 GB per month for price cap carriers that set any usage allowance for service offerings they rely upon to meet their obligations associated with their acceptance of Connect America Phase II model-based support.' The Bureau also requires price cap carriers accepting Phase II support to offer a minimum usage allowance over 1 See Connect America Fund, WC Docket No. I 0-90, Report and Order, 28 FCC Red 15060, (Wireline Comp. Bur ).

11 Page 2- The Honorable Thomas R. Carper the course of the Connect America Phase II's term (now set at six years) that remains consistent with trends in usage for 80 percent of consumers using cable or fiber-based fixed broadband services? In short, we are very cognizant of the critical impact that consumers' data usage has on the quality of their experience in accessing the Internet. Additionally, in its 2014 Open Internet Notice of Proposed Rulemaking, the Commission requested comment on a variety of issues relating to this topic. 3 In particular, the Commission asked for comment "on what economic tools broadband providers utilize to manage traffic on their networks," 4 and noted that "[b]roadband providers may address traffic management through commercial terms and conditions on end users, such as pricing for different levels of throughput or through the use of 'data caps. "' 5 The Commission also asked "[t]o what extent and in what ways do broadband providers use such tools to manage traffic, such as by excluding ce1iain content fi om such an end user data cap?" 6 In response to these questions, some commenters raised usage-based pricing for both mobile and fixed services as one of many issues of potential concern, 7 while others supported such practices as effective means of managing network capacity. 8 On February 5th, I will circulate to my fellow Commissioners for their consideration a draft Report and Order adopting new Open Internet protections. The rules that I intend to propose will provide the FCC with the tools necessary to protect a fast, fair, and open Internet. In addition to rules governing the conduct of broadband providers, I will propose enhancements to the existing transparency rule. That rule, which empowers consumers to make informed choices about broadband services, already requires broadband providers to disclose the commercial terms of a consumer's broadband service, including any data caps or allowances. Because it provides a basis for enforcement where appropriate, the existing transparency rule provides us with an even more effective tool than a voluntary code of conduct would. I am confident that the transparency rule- as it exists already today and as I hope it will be enhanced moving forward - will help to ensure that consumers are protected from harmful practices. In addition to the foregoing, the Commission is cun-ently monitoring usage-based pricing of fixed services through our review of consumer complaints. To date, a relatively small propmiion of the overall complaints have focused on issues pertaining to data caps or other forms of usage-based pricing of fixed services. But we are continuing to monitor consumer 2 Id. at Protecting and Promoting the Open Internet, GN Docket No , Notice of Proposed Ru1emaking, 29 FCC Red 5561 (2014) (2014 Open Internet Notice a/proposed Rulemaking). 4 Id. at Id. 6 ld. 7 See, e.g., Comments of Public Knowledge eta/., GN Docket 14-28, at (filed July 15, 2014) ?82; Comment of Gail Day (filed July 17, 201 4) 18 I See, e.g., Comments oflnt'l Center for Law and Economics and TechFreedom, GN Docket 14-28, at I 9 (filed July I 7, 20 14)

12 Page 3- The Honorable Thomas R. Carper complaints carefully for any changes that would suggest that additional action is needed. In this regard, the Commission's Consumer and Governmental Affairs Bureau is streamlining the process of synthesizing and analyzing consumer complaint trends and will make more of that data readily accessible to the public. We will use this enhanced capability to monitor customer complaints closely, to identify any problems associated with the use of data caps and other usage-based pricing measures, and to take action where appropriate. We believe these current and future measures offer benefits that go beyond what a voluntary code of conduct would accomplish and that it is therefore not necessary to take that step at this time. At the same time, we will use the information currently available, as well as explore the collection of additional data resources, to help ensure the Commission is well positioned to take additional action to protect consumers, should that prove necessary. As recommended in the GAO Report, we will evaluate the information we collect in the Commission's Urban Rates Survey and on the Form 481 to enhance our understanding of what usage-based pricing practices are used in the market for fixed services. These data collections were developed to support the Commission's Universal Service Fw1d's High-Cost program and do not offer information on whether conswners subscribe to plans that have usage limits, on consumers' usage relative to the limits, or on the effect of usage-based pricing on consumers' bills. In addition, and as discussed above, we will ensure that our consumer complaint system carefully catalogs and tracks any complaints that come in, including those that may result from the additional rules I have proposed that my colleagues adopt in the Open Internet proceeding. We will also look at additional data sources to help evaluate this issue and others affecting consumers' ability to access broadband services. 9 We appreciate GAO's analysis and recommendations and its concern for the protection of consumers as we work to reduce barriers and promote competition in the market for broadband services. Should you have any questions or comments regarding this matter, I would be pleased to discuss them with you. ~Sincerel~L~ ~eeler cc: The Honorable Anna Eshoo 9 The Commission has previously sought comment on whether to augment its Form 4 77 data collection to include price and customer satisfaction, along with other factors, and these issues remain open for the Commission' s consideration. See Modernizing the FCC Form 477 Data Program et al., WC Docket No et al., Notice of Proposed Rulemaking, 26 FCC Red 1508 (2011); Rep01t and Order, 28 FCC Red 9887,9892, para. 13 n.29 (2013).